Posts Tagged ‘Verizon’

Keeping Your Eyes and Ears Open

Wednesday, October 7th, 2009

Given the speed of technology advancements it is imperative that we all keep our eyes and ears open to new opportunities. In my opinion, there has not been anything as exciting as what we have seen take place in the mobile industry in the last 5 years - both here in the U.S. and abroad.

From a prepaid perspective, 2009 has to be the most impressive year yet. It was in early January that Boost Mobile introduced their $50 unlimited plan and from that point forward the “Prepaid Mobile Price Wars” began. Maisie Ramsay just recently wrote a great article titled “Duking It Out In Prepaid” in Wireless Week on this subject. Beyond the price wars, the introduction of smart phones and the demand for mobile applications have really changed the face of prepaid mobile.

Also in 2009 we have seen an explosion in the number of mobile applications developed, and more importantly paid for and downloaded. While Apple’s iTunes store model has been by far the most successful (2 billion applications downloaded to date), Nokia, T-Mobile, Verizon, and Windows have all introduced their application store models in an attempt to gain market share in this space. I foresee the day when having a mobile application for your company is just as important as having a website.

As I leave my hotel room this morning and make the short walk to the San Diego Convention Center to attend CTIA Wireless I.T. and Entertainment my eyes and ears will be open to the many new mobile opportunities that lie ahead for NetworkIP and our customers.

Brian Kirk
VP Business Development
NetworkIP and Jaduka

Prepaid Wireless Providers in Q2 2009

Tuesday, September 8th, 2009

It won’t be long before the prepaid wireless providers are reporting their Q3 2009 numbers. Before that happens, I better get these Q2 2009 numbers posted. A BIG thanks to Stacey Higginbotham over at GigaOm for doing the grunt work and compiling this data and making it available for all of us to consume.

From these numbers it is evident that Verizon remains on-top (both postpaid and prepaid) in total number of subscribers and it shouldn’t be a shock to anyone after looking at these statistics on why Sprint bought up Virgin Mobile when they did.

What does surprise me is that MetroPCS, even after adding 206,000 new subscribers last quarter and taking some big strides to promote their services & roll out a number of new products and marketing campaigns, has seen their stock prices continue to drop this quarter. Since the beginning of Q3, we have watched their stock price decrease from $12.63 (Jul. 1st) to $8.25 (Sep. 8th).

It’ll be interesting to see how the rest of Q3 2009 plays out for MetroPCS and the other prepaid mobile providers. I have a strong suspicion that we will see these providers focus on data and become much more aggressive with their international calling plans.

Brian Kirk
VP Business Development
NetworkIP

Leap Wireless (Cricket), reported Aug. 6
Wireless Service Revenue: $541.6 million
Wireless Operating Income: n/a
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 203,000
Total Subscribers: 4.5 million
Prepaid Churn: 4.4%
Prepaid ARPU: $41.91

MetroPCS, reported Aug. 6
Wireless Service Revenue: $859.6 million
Wireless Operating Income: $111 million
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 206,000
Total Subscribers: 6.3 million
Prepaid Churn: 5.8%
Prepaid ARPU: $40.52

T-Mobile, reported Aug. 6
Wireless Service Revenue: $5.34 billion
Wireless Operating Income: $425 million
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 268,000
Total Subscribers: 33.5 million
Blended Churn: 3.1%
Postpaid ARPU: $48

Sprint, reported Jul. 29
Wireless Revenue: $7 billion
Wireless Operating Loss: $314 million
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 777,000
Net Postpaid Subscriber Additions: 991,000
Total Subscribers: 48.8 million
Postpaid Churn: 2.05%
Prepaid Churn: 6.38%
Postpaid ARPU: $56
Prepaid ARPU: $34

Verizon, reported Jul. 27
Wireless Revenue: $15.5 billion
Wireless Operating Income: $4.46 billion
Wireless Data Revenue: $3.9 billion
Net Prepaid & Postpaid Subscriber Additions: 1.1 million
Total Subscribers: 87.7 million
Postpaid Churn: 1.01%
Postpaid ARPU: $51.10

AT&T, reported Jul. 23
Wireless Revenue: $13.25 billion
Wireless Operating Income: $3.2 billion
Wireless Data Revenue: $3.4 billion
Net Postpaid Subscriber Additions: 1.2 million
Net Prepaid Subscriber Additions: 200,000
Blended Churn: 1.49%

Remaining Optimistic About CTIA ‘09

Wednesday, April 1st, 2009

The annual CTIA conference kicked off in Las Vegas earlier today. Due to a conflict I was unable to make it for opening day, however, I’ll be on the conference floor both Thursday and Friday of this week.

According to today’s press releases about the show’s attendance more than 1,000 folks have registered to attend this event. Of the many wireless/mobile conferences in the U.S., I highly recommend you check out CTIA in the future if you have never attended before.

I first went to CTIA in 2007 when we were in our early stages of developing our Text-to-Talk products. My focus when attending CTIA that first time was to meet with all the major Short Messaging Service Center (SMSC) providers like Click-a-Tell, Sybase 365, VeriSign, etc. in order to establish SMS Points of Presence in the different countries we were targeting for these products.

While at the 2007 CTIA conference, I couldn’t help but be distracted by what was then a plethora of new mobile technologies. I’m referring to smart phones, mobile TV, voice-mail to text services, GPS, etc. Now, only two years later, we have 3G technologies, 4G and LTE networks are being engineered, and the end-all be-all game changer the Apple iPhone now exists and in my opinion is the ultimate Unified Communication tool for the consumer.

Given the poor economic climate we are currently in, the telecom industry has been no stranger to numerous layoffs, cutbacks, and even some Chapter 11s. So, as I prepare for CTIA tomorrow I’m trying to remain optimistic about the new technologies and services that the mobile operators and MVNOs will unveil. I suspect this industry to be focused more on providing value and savings to the consumer versus new and innovative services. In recent months numerous MVNOs have begun offering unlimited calling plans and they are in a fast paced race to gain market share. Reducing customer churn is also high on the priority list for all mobile operators and MVNOs right now.

In late February ‘09, Stacey Higginbotham of GigaOM assembled a Wireless Scorecard based on Q4 ’08 statistics from AT&T, T-Mobile, Sprint, and Verizon. Based on Stacey’s breakdown she concludes that cheap rate plans win and that the iPhone is helping to keep AT&T running strong. To note, these numbers were released just prior to Sprint and T-Mobile releasing their $50 unlimited prepaid plans so this year’s Q1 numbers should answer whether those plans proved successful or not.

Tomorrow I’ll have a better since of what’s happening and how the carriers are responding. I remain optimistic and look forward to CTIA ’09 along with the other 1,000 attendees that I’ll be sharing the conference floor with.

Brian Kirk
VP Business Development
NetworkIP

The U.S. is Texting, not Talking

Monday, October 13th, 2008

Nielsen Mobile released a survey recently suggesting that American mobile phone users are actually texting more than they are talking. According to Nielsen, in Q2 2008 U.S. mobile subscribers sent & received on average 357 text messages per month (that’s 11+ text messages a day) versus making 204 phone calls a month.

What I find so remarkable about this surge in text usage in the U.S. is that the cost associated with texting only continues to increase. In fact, in the past two years the cost for sending & receiving text messages without a *special* text message plan has increased by 100%. Without one of these *special* text messaging plans, the consumer is paying $0.20 for each individual text message that is sent & received. The reason why texting is so popular in the Philippines (the text messaging capital of world) for example is because the cost of a text message is less than a penny & the mobile subscribers in the Philippines simply can’t afford to make phone calls. Europe provides another good example of a consumer base that heavily texts, but again, Europeans text in an effort to avoid high roaming charges between countries.

So with the costs of text messaging rising here in the States, why & where is the increased volume coming from? Not surprising to most parents - it’s coming from teens. Teens 13 to 17 years old on average sent & received about 1,742 text messages a month or 58 text messages a day! A surprising statistic to me was that kids under the age of 12 are also heavy text message users. These pre-teens send on average 428 text messages a month.

I forecast that even with the costs of text messaging rising, (which they are -see Verizon’s notice from last week about hiking their fees for mobile-terminated messages) that the popularity of text messaging will continue to increase here in the States. Not only will our teen population continue to send more text messages, but the enterprise world is continuing to adopt & deploy more mobile marketing campaigns with the help of SMS gateway providers such as Clickatell.

Brian Kirk
VP Business Development
NetworkIP & Jaduka